Stocks gain ground, oil prices fall as Ukraine tensions ease

Stocks rose broadly in morning trading on Wall Street Tuesday as investors welcomed early signs that tensions appear to be easing in Ukraine.

The S&P 500 rose 1.1% as of 10:13 a.m. Eastern. Roughly 90% of stocks within the benchmark index notched gains. The Dow Jones Industrial Average rose 325 points, or 0.9%, to 34,896 and the Nasdaq rose 1.7%.

Technology stocks and companies that rely on consumer spending led the gains. Apple rose 1.3%, Amazon rose 1% and Nike rose 2.5%.

Bond yields continued rising. The yield on the 10-year Treasury rose to 2.03% from 1.99% late Monday. The gains helped lift banks, which rely on higher bond yields to charge more lucrative interest rates on loans. JPMorgan Chase rose 1.6%.

Treasury yields have been gaining ground throughout 2022 as investors prepare for the Federal Reserve to start raising interest rates to fight rising inflation. The central bank is expected to start raising rates in March and traders see a 61% chance for a first hike of half a percentage point, double the traditional move.

U.S. benchmark crude oil prices slumped 4.7%. Oil prices have been volatile amid tensions over Russia potentially invading neighboring Ukraine. Some of that tension was relieved Tuesday after Russia said some troops would be returning to military bases, though it didn’t specifically say the troops pulling back were part of those amassed on Ukraine’s border.

Russia is a major energy producer and military action that disrupts supplies could jolt markets and global industries.

European markets, which have been sensitive to tensions between Russia and Ukraine, were higher.

The concerns on Wall Street over the potential conflict were piled on to a long list of threats for the broader financial markets and global economy that include...